GM downgraded again; GMAC still on the block

Fitch Ratings last week gave General Motors Corp.'s senior unsecured debt a 41% recovery rating, a number in line with estimates from the derivatives market.

The rating agency simultaneously lowered the troubled auto company's issuer default rating another notch to B' from B+.' Its analysts said the failure of GM's suppliers to provide trade credit, or an extended strike by Delphi Corp. workers, would likely be enough to push the company into bankruptcy.

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